H2 Green Steel partners with Fortum for electricity

H2 Green Steel and Fortum have signed a frame agreement for electricity trading for the supply of CO2-free electricity for H2 Green Steel’s projected steel mill in northern Sweden.

The frame agreement is initially planned to include two power purchase agreements (PPAs) for 2.3 TWh per year, Kallanish learns from H2GS. In detail, these are one index-based PPA of 1.3 TWh annually (from 2026) with a five-year hedging horizon, and a fixed price PPA of 1 TWh for up to nine years (from 2027).

Significant volumes of electricity are needed to power the 700-800MW electrolyser that will generate green hydrogen, H2GS notes. The electrolyser will reduce iron ore to sponge iron that will feed the steel production at H2GS’s plant.

“Fortum takes a frontrunner position among Nordic companies supporting the region’s green industrialisation,” says Luisa Orre, chief procurement officer of H2GS.

In fact, Fortum is also a stakeholder in another ambitious Scandinavian greenfield venture – Blastr – which plans to build a mill for green steels in Finland.

Christian Koehl Germany